In a move that could shake up college football, the Mississippi House just passed a tax bill that excludes NIL (name, image, and likeness) earnings from state income tax. The bill’s headed to the state Senate and, if Gov. Tate Reeves signs it, could take effect as soon as next year.
Some lawmakers say it’ll make Mississippi’s college football programs more appealing to recruits. Others aren’t thrilled about giving tax breaks to athletes earning money from NIL deals.
This is just the latest twist in the wild NIL landscape that’s been changing college sports since 2021.
The Mississippi NIL Tax Bill: What It Means
The bill aims to give college athletes a real financial boost by keeping their NIL earnings free from state taxes. If it becomes law, Mississippi might suddenly look a lot more attractive to top-tier football talent.
Key Provisions of the Bill
- State Income Tax Exclusion: NIL earnings won’t be taxed at the state level.
- Federal Tax Requirements: Athletes still have to pay federal income taxes.
- Out-of-State NIL Deals: If athletes make NIL money in states without similar laws, those states can still tax their income.
Rep. Trey Lamar, from the 8th House district, thinks this gives Mississippi schools a leg up in recruiting. But Rep. Dan Eubanks, representing district 25, isn’t convinced athletes should get special treatment just because they’re earning NIL money.
Comparing Mississippi to Other States
Mississippi isn’t the first state to look at this kind of thing. Florida, Texas, and Tennessee already have no state income tax, giving their college athletes a solid financial edge.
Arkansas actually led the way, passing a no-tax-on-NIL bill back in 2025. Seems like the competition just keeps heating up.
The SEC NIL Arms Race
Ever since student-athletes could get paid for their NIL starting in July 2021, the race to sign top talent has only picked up speed. SEC schools in states with no state income tax—or with NIL tax breaks—have managed to build some of the biggest NIL war chests out there.
- Top Programs: Arkansas, Tennessee, Florida, Texas A&M, and Texas all rank among the top 25 for NIL resources.
- Estimated NIL Totals: Each program has at least $11.5 million in NIL resources, with Texas sitting at the top with $22 million.
The Financial Impact on Athletes
If this bill passes, Mississippi athletes could keep more of their NIL money—at least when it comes to state taxes. They’ll still owe federal taxes, and if they do NIL deals in other states, those earnings might get taxed elsewhere.
Case Study: Ole Miss and Trinidad Chambliss
Ole Miss has been spending big in the SEC lately. Take quarterback Trinidad Chambliss—he’s set for a revenue-sharing deal worth over $5 million in 2026 after getting a sixth year of eligibility in state court.
Deals like that are popping up more often, especially in states where athletes get tax breaks on their NIL earnings.
Division I schools can share up to $20.5 million in revenue with athletes for the 2025–26 season, thanks to the House vs. NCAA settlement. And true NIL payments can go on top of that, so student-athletes are seeing their earnings climb.
The Broader Implications
This bill isn’t just about money—it’s a strategic play in the NIL arms race. Mississippi wants to lure top athletes who might otherwise head to states with better tax laws.
Arguments For and Against
Supporters like Rep. Trey Lamar say it’ll help Mississippi football compete and draw better talent, raising the state’s profile. Critics like Rep. Dan Eubanks wonder if it’s fair for NIL-earning athletes to get tax breaks that others don’t.
Conclusion
The Mississippi House just passed a new tax bill, and honestly, it could shake up college football in a big way. By letting athletes keep their NIL earnings free from state income tax, Mississippi is clearly trying to make its college programs stand out to top recruits.
Will this just ramp up the NIL arms race? Maybe. It definitely makes you wonder about fairness and what it’ll mean for college sports overall. There are a lot of moving parts here, and not everyone’s going to agree on whether it’s a good thing.
Want the full scoop? Check out the article on Sports Illustrated.
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